【$AAVE Signal】Hold Cash and Wait—Downtrend Continuation, Lack of Reversal Momentum

$AAVE In the daily chart downtrend, a narrow range consolidation has formed on the 4H chart. The price is suppressed below the EMA20 (111.33), and EMA20/50 are in a bearish alignment. Depth imbalance is at -2.37%, with a clear accumulation of sell orders (Asks), indicating heavy resistance above. The 4H RSI hovers around 42, not entering the oversold zone, lacking rebound momentum. The buy/sell ratio is between 0.39-0.55, showing weak buying pressure, only a weak rebound. Open interest remains stable, and the funding rate is slightly positive, indicating that the decline is not driven by short squeezes or concentrated long liquidations, but by persistent selling pressure.

🎯Direction: Hold Cash (NoPosition)

The current structure is a downtrend continuation, with the price weakly consolidating below the key EMA, without effective buy absorption or bottom formation. Long positions lack technical support, while short positions face the risk of narrow-range erosion. The core risk management strategy is to wait for a clear signal: either a volume breakdown below the recent low of 107.79 to confirm the continuation of the decline, or a strong breakout and stabilization above EMA20 (111.33). Only then, combined with a reversal in buy/sell ratio and depth imbalance, will directional trading be considered.

Trade here 👇 $AAVE

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